Availability is the hard currency in mechanical engineering. A sorting or baling line that comes to a standstill halts the entire material flow downstream, and operators pay prices for response times, spare parts supply, and plant expertise that are hardly feasible anymore in the new equipment business on an international scale.
For M&A, this shifts the focus to the installed base and the ability to service it over decades. In the Q1 report, we showed how regulation in process filtration is replacing the economic cycle as a driver of demand. In recycling and sorting technology, both factors come together.
The timing is noteworthy. The VDMA expects a 2% real decline in production for the German machinery manufacturing sector in 2026—the fourth consecutive year of decline. Behind this average, the various industry segments are diverging. The waste and recycling technology sector anticipates a 2.3% increase in revenue, a 4.5% rise in orders, and an export ratio of 70%. This is driven by regulation: The EU Packaging Regulation has been in effect since August 12, 2026; the Circular Economy Act is set to follow by the end of the year; and the European recycling rate is set to rise from around 12% to 24% by 2030.
In the Sektor Insight on page 3 of the SektorReport Industrials Q3 2026, we explain why buyers in this segment place greater emphasis on the service component than on the order book, and why providing services for third-party facilities opens the door to the next investment cycle.
The Deal Report on page 5 of the SektorReport Industrials Q3 2026 illustrates the rationale behind a recent transaction.
In July 2026, Vidia Equity, together with H&G, spun off Europress Umwelttechnik from the Neuenhauser Group; since September, the two companies have formed the investor’s new recycling technology platform. The stated value driver is the expansion of the service business.
Further insights into this transaction can be found in the SektorReport Sustainability Q3 2026: New deposit and collection systems are creating investment demand across Europe. German recycling expertise is thus becoming a sought-after export commodity.
Our SektorReports are available in German language. If you have further questions regarding this topic, feel free to get in touch.